If you're a new landlord or you're trying to start a career in real estate investing, one of the most important decisions you'll make is determining the rental value of your property. But how can you do this?
Tampa tenants are cognizant of steep rent increases, so it's important to be strategic when setting your rent. This article is going to teach you how to accurately determine property value from a rental perspective. Read on for everything you need to know about real estate tips and more.
Talk With Experts
If you're new to property management and real estate investing, one of the best real estate investing tips you'll hear is that you should seek help from more experienced people in the field. Weighing up your property value options can be tricky, especially if you've never done it before.
If you work with a property management company, for example, they'll be able to help you accurately value a potential property. You don't want to make an investment based on a false property rental value.
Look at Other Properties in Your Area
One of the ways of determining rental value is to look at what other similar properties in a similar area are leasing for. To do this, you should analyze a good number of units, not just one or two.
You can do this either by speaking with other landlords in the area or by merely looking at listings online. Try to take as large a sampling as possible and then see what the median price is.
Remember to only compare like with like. There's no point looking at 5-bedroom family homes if you're renting a studio apartment. Try to only look at properties in your immediate area for the most accurate results.
Take Your Expenses Into Account
One thing landlords often overlook when valuing a rental property is all of the added expenses that can detract from their ROI. You'll need to pay for things like maintenance, property accounting, and property marketing.
Then there are all of the manhours you'll be spending on essential tasks such as rent collection and tenant screening. You need to take all of your expenses into account when figuring out how much you stand to make from a rental property. One of the best landlord tips is to work with a rental property management company that will provide you with one centralized and affordable source for all of your property management needs.
Determining Rental Value
Determining the rental value of a property can be tricky. The real estate market is always changing, and this can affect a property's value from one month to the next. Make sure to speak with experts for any guidance you may need.
If you need assistance with determining the value of a property, the Rent It Network can help. Get in touch to speak with a member of our team today.